Monday, October 11th, 2021
Indices: US Stocks kicked off the week on a sour note with the Dow falling 250 points or 0.72%. The S&P 500 and Nasdaq closed lower by 0.69% and 0.64%, respectively. The Russell 2000 slightly outperformed, but still declined 0.56%.
Sectors: 2 of the 11 sectors closed higher. Real Estate led, inching up just 0.13%. Communications lagged, falling 1.51%.
Commodities: Crude Oil futures rose 1.46% to a seven-year high of $80.51 per barrel. Gold futures slipped 0.19% to $1,754 per ounce.
Currencies: The US Dollar Index moved higher by 0.27%.
Interest Rates: The Bond Market was closed for Columbus Day.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
— Bespoke (@bespokeinvest) October 11, 2021
Today’s Chart of the Day was shared by Bespoke (@bespokeinvest). It’s a daily candlestick chart of the Finacial sector ETF, $XLF, over the past year. The top-weighted stocks in this ETF include Berkshire Hathaway ($BRK.B), JP Morgan ($JPM), Bank of America ($BAC), Wells Fargo ($WFC), and Citigroup ($C). The Financial sector is up more than 30% year-to-date, making it the second-best performing sector this year behind Energy. Bespoke points out that $XLF broke out of a four-month range to an all-time high last week. It’s possible that this turns into a failed breakout, but there’s a clear line in the sand around $38. As long as it’s above $38, the risk is to the upside. Some of the largest banks in this sector report earnings this week, so we’ll likely know by Friday whether or not the recent breakout holds.
Quote of the Day
“If most traders would learn to sit on their hands 50 percent of the time, they would make a lot more money.”
– Bill Lipschutz
Stocks are Stuck as Rates Move Higher – Potomac Fund Management
Dan Russo shares some thoughts on the current market environment.
A Run on Banks – StockCharts.com
Julius de Kempenaer examines the recent rotation into the Financial sector.
Commodities Never Do This During a Bear Market – SentimenTrader
Jason Goepfert explains why Commodities could be in the early stages of a secular bull market.
Cyclical Nature – The Weekly Trend
In this podcast, David Zarling and Ian McMillan discuss the most important technical developments on their radar.
Is CAC 40 Index Headed for a Steep Decline? – Kimble Charting Solutions
Chris Kimble points out that the French CAC 40 index is stalling at long-term resistance.
Not a great start to the week for the bulls. Broad-based, though week, selloff intraday. pic.twitter.com/ZJlrHQw1VO
— Mike Zaccardi, CFA, CMT (@MikeZaccardi) October 11, 2021
S&P500 50d MA used to act as support…
now it acts as resistance. pic.twitter.com/8AKRCCuYca
— Yuriy Matso (@yuriymatso) October 11, 2021
— Luke Hatch (@HatchingGains) October 11, 2021
— Steven Spencer (@sspencer_smb) October 11, 2021
Russell 2000 $IWM volatility expansion is just right around the corner.
Make sure you are not on the wrong side of that when it snaps. Tons of pent-up energy in that.
These waves can't get any tighter (Green line on chart)$SPY $QQQ pic.twitter.com/syMe4eRvJE
— TA Plot (@TaPlot) October 11, 2021
Big bearish bets.
Last week, volume in inverse ETFs averaged 1.75% of total NYSE volume.
That's a new record. pic.twitter.com/o4rMuwusVS
— SentimenTrader (@sentimentrader) October 11, 2021
— Grant Hawkridge (@granthawkridge) October 11, 2021
— Bailey.Baxter2020 (@BBaxter2020) October 11, 2021
— Ian Culley (@IanCulley) October 11, 2021
Bitcoin's only another 10% from its all-time high achieved in April. It feels like yesterday when it was trading at 30k, how time flies, eh? pic.twitter.com/ePUZiiawIS
— Louis Sykes (@haumicharts) October 11, 2021
This rally has come with little fanfare & doesn’t seem driven by momentum chasers. As we see, the percentage of coins held by short-term “tourists” is down to just 15%, below levels seen at bottoms. This tells me there could be room to run if momentum chasers pile in. /2 pic.twitter.com/SjW4kkhjiO
— Jurrien Timmer (@TimmerFidelity) October 11, 2021
What happens when prices closes above a prior ATH monthly close?
Answer: 🚀 pic.twitter.com/m8DFwWk5nU
— Nunya Bizniz (@Pladizow) October 11, 2021
You’re all caught up now. Thanks for reading!